All Forum Posts by: Christina A.

Hi @Christina A. Yep, rates have been climbing. Lenders don't arbitrarily change rates on a whim. We get the money to lend out from "Wall Street" traunches that get their money from conservative investors that purchase Mortgage Backed Securties (MBSs). These conservative investors have choices as to where to place their money. They can be super safe and buy a 10-Year US Treasury, or they can get a little more "juice" to the return, accept a bit more risk, and buy a MBS. That increase in risk comes with a "risk premium" to the rate. Why would an investsor buy an MBS if they can get a Treasury for the same money, so MBSs will track directly with the Treasury and always be a bit above them. When the Treasury goes up, mortgage rates go up. When the Treasury rates go down, mortgage rates go down. Now, there are varying degrees of risk depending upon the type of MBS that the investor wants to invest in. 30-Year Fixed Rate Owner-Occupied home mortgages have a lower default rate than non-owner-occupied fix-n-flip investor loans, so the latter will have a much higher risk premium, therefore, a much higher rate. 

Provided you can prove your income (I couldn't tell from your post if that was an issue or not), then current rates are right at 7% or so. We're a bit below 7 in most cases as of the time I'm writing this. I'll post the current 30-Year Fixed Rate National Average according to publication Mortgage News Daily and I'll also include the chart of the 10-Year Treasury over the past 2 years to illustrate why mortgage rates are climbing so much. They track right along with the Treasury. I know it's not what you want to hear, but it's how the lending world works. Let me know if you have questions and I'll try to answer them. 

Hi Christina, I understand as I am an investor and self-employed with provable income as well. This high price/high rate environment is just the south FL at the moment and you can expect prices to continue increasing as well. If you buy your primary now and plan to live in it long term, you will feel really smart in a few years. I am thankful I bought a few years ago even though everyone told me I was overpaying. $265k for a 3/2 SFH in a good neighborhood.

@Christina A. Unfortunately, that is the current market.  Rates have progressively gotten worst since June 15th and with the Fed's confusing stance on pausing raising rates in June BUT, "oh wait, we likely will raise rates again 2 times in the future"; it certainly does not help. Pretty much every lender that sells on the secondary market are in the same boat here. Now, you may find one or two lenders who sell on the secondary maket who may be about 0.25% - 0.375% apart in interest rates but this is where the market is currently.  

You could look into a Credit Union who's portfolio loans may be a little better but know that any credit union that is still offering lower rates today is in all likely hood did a terrible job lending out their money the last few years.  Hence, why they are now able to lend at those lower rates because they have excess money but that begs the question, how long can they sustain going that path when they are paying out more interests on savings, CD's, Money Market, etc. than what they are lending out. 

Discount points is also becoming more a norm for a lot of borrowers to try and reduce the interest rates. 

Again aside from credit unions or private money lenders, most lenders are going to be right around what you've received, thus far. 

Good luck and let us know if you have any questions. 

 Is your self-employment within the same industry as your prior work?